Village Roadshow to focus on Asian markets

Australian theme park group
Village Roadshow
will focus on less developed Asian markets as it scales back its involvement in the United States.

Village announced last week that it would offload water parks in Hawaii and Arizona, marking a $2 million loss, as it maintains a 51 per cent stake in a recently opened Wet'n'Wild park in Las Vegas.

Chairman Robert Kirby says emerging economies are a better proposition.

"This change in strategy is because we considered that it was becoming increasingly difficult, with the improving US economy, to acquire additional suitable properties at satisfactory prices, and because we consider that we can achieve better returns in less mature markets, notably in Asia," he told shareholders.

A water park on Hainan Island in China is due to open in late 2014 or early 2015.

Next month, the group is opening Sydney's first major theme park since Wonderland closed in 2004, which will include 40 rides and the "world's biggest inland sea".

Village has spent $8 million marketing its new Wet'n'Wild park at Prospect, in Sydney's west, with the costs to come off the balance sheet for the second half of 2013/14.

"We have no doubt that the pay-off will be significant for the 2014 full-year and beyond," Mr Kirby said.